Don’t let this week’s weather fool you. Washington state is nowhere near a rainy day, at least not economically speaking. State Treasurer James McIntire made that stern pronouncement in an April 25 letter to legislators, warning them against tapping the state’s “rainy day” fund to solve lingering budget problems.
McIntire, a former legislator and one of the leading economic experts in the state, is one whose advice should be heeded. And yet rumblings persist that some legislators, currently bogged down in a special session, have shifted their eyes covetously toward the state’s $575 million rainy day fund that is designed for genuine financial emergencies.
When Washington voters amended the state constitution to create and later strengthen the state’s rainy day fund, there might have been varying definitions of a rainy day. But, setting aside weather conditions, the Legislature’s budget-balancing predicament certainly doesn’t qualify as a rainy day. Early growth signs are detected in the national and state economic recovery, and as The Olympian newspaper pointed out recently, state revenue in the next few years “is projected to grow by more than 6 percent from the current two-year budget.”
Fortunately, a supermajority vote among legislators is needed to raid the rainy day fund. But that ominous challenge didn’t stop the Democrat-controlled state House from proposing a raid on the rainy day fund. The Spokesman-Review of Spokane reports that the House budget includes a virtual cleaning out of the fund, using more than $200 million and shifting the rest to where it would be easily accessed by the lawmakers. The Republican-controlled Senate will have no part in that, which is praiseworthy, but McIntire faults the Senate as well for projecting an ending balance in the biennium budget of $19 million. That might sound like a lot, but McIntire points out that it’s “about a half a day’s spending” for the state.